102 KAR 1:185. Reciprocal program between

County Employees Retirement System, Kentucky Employees Retirement System, State

Police Retirement System, Legislators' Retirement Plan, Judicial Retirement

System, and Teachers' Retirement System.

 

      RELATES TO: KRS 6.525, 16.537, 21.427,

61.552, 61.680, 78.605, 161.600, 161.608

      STATUTORY AUTHORITY: KRS 161.310

      NECESSITY, FUNCTION, AND CONFORMITY: KRS

6.525, 16.537, 21.427, 61.552, 61.680, 78.605, 161.600, and 161.608 set forth a

broad program of reciprocity among the retirement systems administered under

provisions of KRS Chapters 6, 16, 21, 61, 78, and 161. This administrative

regulation defines the benefits to be provided and the administrative

procedures to be followed in arriving at the appropriate payments to be made to

eligible persons.

 

      Section 1. Upon death, disability, or

service retirement, the following procedure shall be applicable to a member

having an account in more than one (1) retirement system:

      (1) Combine the member's service in all

systems;

      (2) Determine eligibility in each system

based on combined service;

      (3) If eligible in any system, determine

benefits; and

      (4) Check for specific exceptions such as

prior service, request for separate account or special death or disability

exception.

 

      Section 2. (1) Reciprocity provisions

shall not apply if the member requests that his or her accounts be separated.

      (2) The "final average salary"

shall be calculated by using the highest annual salaries regardless of the

system under which the service was covered. Calculations shall be based on the

procedures in use by each system concerned.

      (3) Each system shall determine benefit

payments on the basis of the final average salary and service credited in that

system. Payments shall be made by each system in accordance with established

procedures. If the normal age requirement has not been met, benefits shall be

actuarially reduced.

      (4) The member shall not be required to

elect the same retirement option in both systems. Each annuity option shall

apply only to the system for which it is elected.

      (5) A member may elect to have each

system treat his service credit in that system without regard to any other

service credit, by requesting that his accounts be separated. If requested,

"final average salary" shall be based on the salaries earned under

each system separately.

 

      Section 3. (1) If a member qualifies for

disability benefits based on service in the system in which he is currently a

contributing member, he shall receive disability benefits from that system

based on the formula used by that system and the other system(s) shall pay:

      (a) Benefits based on separate accounts

if the member elects to maintain separate accounts; or

      (b) An actuarial accrued benefit based on

the member's age, service, and final compensation, if eligible for this

benefit; or

      (c) A refund if requested by the member.

      (2)(a) If the combined service in two (2)

or more systems is used to qualify a member for benefits, all systems under

which the combined service would meet service requirements shall participate in

benefit payments.

      (b) Each system shall calculate benefits

using the formula in effect in that system.

      (c) The Teachers' Retirement System shall

pay benefits during the eligibility period in proportion to the service in the Teachers'

Retirement System as it relates to total combined service.

      (d) After the expiration of the

eligibility period, the benefit shall be recalculated on the basis of Teachers'

Retirement System service without discount.

      (3) If the combined service of a member

meets service requirements in only one (1) system, that system shall only pay

benefits under their disability formula and the other system shall pay benefits

under subsection (1)(a) to (c) of this section.

      (4) The medical requirements for disability

benefits shall be those of the system to which the member is currently

contributing, if combined service meets service requirements of that system. If

service requirements are met in only one (1) system, the medical requirements

of that system shall prevail.

 

      Section 4. (1) An active member with

Teachers' Retirement System service who has not qualified for Teachers'

Retirement System service retirement at the time of death shall have death and

survivor benefit coverage as follows:

      (a) A Teachers' Retirement System member

currently employed in a position covered by the Teachers' Retirement System

shall have full coverage for benefits provided by KRS 161.520 and KRS 161.655

without regard to service in any other system;

      (b) A Teachers' Retirement System member

currently employed in a position covered by the County Employees Retirement

System, the Kentucky Employees Retirement System, or the State Police

Retirement System shall qualify for coverage in proportion to the service in

the Teachers' Retirement System as it relates to total combined service;

      (c) Service in any of the state

retirement systems affected by this administrative regulation shall qualify as

continued coverage under the Teachers' Retirement System if the member was

covered at the termination of employment under the Teachers' Retirement System

and did not withdraw his account with the Teachers' Retirement System. This

coverage shall continue until the time the member became eligible for death or

survivor benefits in the system under which he is currently employed.

      (2) An active member with Teachers'

Retirement System service who has qualified for service retirement at time of

death shall have coverage for death and survivors benefits as follows:

      (a) If the member had sufficient Teachers'

Retirement System service to qualify for retirement on that service only, full

benefits shall be payable to qualified survivors as provided in KRS 161.520,

161.525 and 161.655. The annuity portion shall be calculated as provided in KRS

21.420 and 61.680 and actuarially adjusted for age and sex of the eligible

survivor.

      (b) If the member qualified for

retirement only on the basis of combined service, the benefits under KRS

161.520 and 161.655 shall be paid in the same proportion as the Teachers'

Retirement System service was to total combined service. The annuity portion

shall be calculated as provided in subsection (2)(a) of this section.

 

      Section 5. A former member of the

Teachers' Retirement System who has withdrawn his account and last service

credit may reinstate his account and service credit with the Teachers'

Retirement System if:

      (1) The member is a contributing member

of the County Employees Retirement System, the Kentucky Employees Retirement

System, the State Police Retirement System, the Legislators' Retirement Plan,

or the Judicial Retirement System with at least one (1) year of contributing

service; and

      (2) If Prior Service is involved, the

member shall have one (1) or more years contributing service in the Teachers'

Retirement System subsequent to July 1, 1941.

 

      Section 6. A member having valid service

credit in more than one (1) of the state retirement systems may elect to

purchase retirement credit for active duty time in one (1) system or he may

divide the service credit between two (2) systems. If service is to be divided

the following additional requirements shall all be met:

      (1) The total military service credit in

all systems shall not exceed six (6) years.

      (2) The same years active duty shall not

be used in more than one (1) system.

      (3) Each system shall calculate the costs

of military retirement credit in accordance with the statutes and

administrative regulations of that system.

 

      Section 7. (1) A Teachers' Retirement

System member who has service credit in the Kentucky Employees Retirement

System, County Employees Retirement System, State Police Retirement System,

Legislators' Retirement Plan, or Judicial Retirement System shall have his

total service in these retirement systems combined to determine eligibility for

participation in the medical insurance program established by KRS 161.675.

      (2) If a member is eligible for medical

insurance benefits under KRS 161.675, the member may elect an insurance plan

offered by any of the participating retirement systems in which the member has

service credit.

      (3) The cost of the member's medical

insurance premium shall be prorated between the participating retirement

systems based upon the member's service credit in each respective retirement

system.

      (4) The Teachers' Retirement System shall

not pay a premium which exceeds the amount which the member is eligible to

receive based upon the premium schedule in effect for each respective period of

coverage.

      (5) Spouses and eligible dependents may

elect coverage if the member elects medical insurance coverage under the

Teachers' Retirement System plan, except the retirement system shall not

provide premium costs for spouses and eligible dependents if the member elects

medical insurance coverage under the plan offered by any of the other participating

retirement systems.

      (6) Participation in the Teachers'

Retirement System plan shall be limited to the period of coverage offered at

the time of retirement or offered during subsequent periods of open enrollment.

      (7) Reconciliation of prorated premium

payments for medical insurance coverage between participating retirement

systems shall be made not less than once during each fiscal year.

      (8) The reciprocal provisions relating to

medical insurance shall be retroactive to July 1, 1990. (1 Ky.R. 590; eff.

4-9-75; Am. 3 Ky.R. 379; eff. 12-1-76; 17 Ky.R. 2481; eff. 4-5-91; 19 Ky.R.

1097; 1529; eff. 1-4-93; 29 Ky.R. 2941; 30 Ky.R. 176; eff. 8-13-2003.)